Business & Innovation Summit

Rethink, Rebrand, Re-Position

Discover How to go from Survival to Expansion in Business in this Forthcoming Webinar.

Register Now

<We_can_help/>

What are you looking for?

>Business >Energy

Nigeria’s economic growth quickened in the first quarter as oil output started to recover and manufacturing production increased for the first time in a year.

Gross domestic product in the continent’s biggest oil producer expanded 0.5% in the three months through March from a year earlier, the Abuja-based National Bureau of Statistics said in a report published on Twitter on Sunday. That compares with 0.11% growth in the fourth quarter.

Nigeria's economic recovery continued in the first quarter

The median of three economists’ estimates in a Bloomberg survey was for an increase of 0.9%. The slow pickup in growth could reinforce central bank Governor Godwin Emefiele’s view that it’s still too early to increase the key interest rate from 11.5%.

Emefiele has said the monetary policy committee can only shift to fighting inflation that’s at an almost four-year high once the economy’s recovery from last year’s recession gains some traction. The MPC starts a two-day meeting on Monday and Emefiele will announce the outcome of the deliberations on Tuesday.

Bloomberg Economics says that they still expect a modest rebound this year, with GDP on track to recover by more than 2%. Inflation is also expected to remain above target. However, they don’t expect the Central Bank of Nigeria to hike rates until later in the year, when it is confident in the strength of the recovery.

Crude output rose to 1.72 million barrels per day in the first quarter from 1.56 million in the last quarter of 2020. But production is still below what it was before the coronavirus-linked lockdowns decimated demand and prices fell. Oil GDP contracted by 2.2% compared with a drop of 19.8% in the previous three months.

While oil contributes less than 10% of the country’s GDP, it’s a key driver of growth and provides most of the hard currency needed to power other industries and finance the government.

The non-oil economy expanded by 0.79% from a year earlier, picking up pace with manufacturing growing 3.4% and telecommunications increasing 7.7%.

Inflation unexpectedly eased in April for the first time in nearly two years, but at 18.1% it’s still double the top of the central bank’s target range. The rate has remained high even with economic underperformance since the oil crash of 2014. GDP could grow 2.5% this year and 2.3% in 2022, according to the International Monetary Fund.

“The MPC will be emboldened to keep monetary policy rate steady given the lower inflation” and positive growth number, said Gbolahan Taiwo, an economist with Stanbic IBTC Bank in Lagos.

Nigeria’s economic growth quickened in the first quarter as oil output started to recover and manufacturing production increased for the first time in a year. Gross domestic product in the continent’s biggest oil producer expanded 0.5% in the three months through March from a year earlier, the Abuja-based National Bureau of Statistics said in a report published on Twitter on Sunday. That compares with 0.11% growth in the fourth quarter. The median of three economists’ estimates in a Bloomberg survey was for an increase of 0.9%. The slow pickup in growth could reinforce central bank Governor Godwin Emefiele’s view that it’s still

There are reports that Nigeria has not been able to sell some of its oil. Indian refineries have slowed down buying Nigerian oil as a result of COVID-19. India is a large buyer of Nigeria’s Agbami, Akpo, Bonny Light and Forcados. According to private sources, there are about 5 shipments of Nigeria Bonny deferred into June (with 2 of them already delayed from April). When cargo is “deferred,” it does not mean that there was some kind of logistical issue, it generally means that no buyers were found. A source who pleaded anonymity also confirmed that “the problem with the lack of demand for Nigeria’s

Nigerian President Muhammadu Buhari on Friday confirmed his nation's commitments to the Paris Agreement at the U.S.-led climate summit. Speaking virtually to the White House from Abuja, Buhari said since 2016, Nigeria had undertaken "major environmentally sound and climate friendly programs." He said institutional frameworks have been made to cut emissions by 2030. "Beyond ending gas flaring by 2030, the oil and gas sector has undertaken steps for diversification, risk management systems, insurance (indistinct) research and development and energy crisis planning", Buhari said. Kenya's President Uhuru Kenyatta laid out the African nation's targets for clean energy and reducing carbon emissions at the U.S.-led climate

Air pollution has been termed ‘a silent health Killer’, with the Director-General of the World Health Organization (WHO), Dr. Tedros Adhanom Ghebreyesus, calling it 'the new tobacco'. It is a scourge that kills 7,000,000 individuals consistently, making it a more pressing threat than any other kind of pollution. Just as it affects the Global populace, it likewise impacts virtually all parts of the body. Air pollution is the world’s largest single environmental health risk. According to a number of recent reports and as is communicated regularly in news bulletins from Beijing and New Delhi,  the problem of air pollution in today’s

The Priority  Without a doubt, climate change poses significant perils to Africa’s sustainable development outlooks over the next decade. The recent trends of increasing global temperatures and incidences of extreme climate events in Africa—mainly droughts and floods—are likely to continue. These severe climate events reveal the extent and depth of the effect of climate change on African economies. African policymakers should prioritize climate change adaptation and mitigation strategies in their respective development agenda with the view of catalysing and sustaining the relative peace and economic growth on the continent. Furthermore, Africa’s voice in international climate change negotiations is very limited even

New Release: The African Economic Congress 2020 Report.